Central Government Sponsored Programs

State governments in India operate Centrally Sponsored Schemes (CSS), which are mostly supported by the Central Government with a set State Government portion. Mahatma Gandhi National Rural Employment Guarantee Act, Pradhan Mantri Gram Sadak Yojana, and others are examples of such programs.

History:

The practice of granting Central Assistance to States to support development initiatives was popular even before the introduction of India’s Five-Year Plans. Following World War II, the Central Government and Provincial Governments began development initiatives that were funded by Central Assistance in the form of post-war development grants.

By 1950–51, several of these awards had expired, while grants for programmes like Grow More Food had persisted. Because the precise division of financial responsibilities had not been determined by the time of the First Five Year Plan, several initiatives that should have been allocated to the State sector were instead allocated to the Central sector. Community development projects, unique small irrigation projects, municipal works, and other projects were also included. There was no defined criterion for distributing Central Assistance to the States at the time. A majority of the initiatives that were financed centrally and executed by the States outside of the State Plan were transferred to the States and included in the State Plans with the start of the Second Five Year Plan.

The second plan needed a major transfer of resources from the Centre to the States, as the combined resources of all the States were expected to be 60 percent short of the demand. The Third Five-Year Plan had a similar situation.

Proliferation in number:

The National Development Council Committee advocated capping Centrally Sponsored Schemes to 1/6th of Central Plan funding to States in 1968. The Central Ministries, on the other hand, proceeded to create additional plans, and the budgetary limit was eventually exceeded. CSS numbers grew from 45 in 1969 to 190 by the end of the Fifth Five-Year Plan. In response to state complaints over the expansion of Centrally Sponsored Initiatives, 72 Centrally Sponsored Schemes were transferred to the states as part of State Plan schemes during the Sixth Five Year Plan. The resulting central savings of around Rs.2,000 crore were distributed to the States as additional block aid based on the Income Adjusted Total Population Formula. Since then, the growth of Centrally Sponsored Schemes has persisted, and the problem was highlighted again by state governments during the Seventh Five Year Plan. NDC established an Expert Group under the chairmanship of K. Ramamurty to address different CSS concerns. However, when the Expert Group’s report was examined in 1985, it was deemed that the criteria proposed by the Expert Group to remain with existing CSS or create a new CSS were too wide, and that meeting a significant national aim as one of the criteria was required. As a result, a new committee was formed under the chairmanship of Minister of Human Resource Development Narasimha Rao. The committee established the following criteria for the establishment of a new CSS during its first meeting:

• The achievement of a major national goal, such as poverty reduction or education minimum requirements; or
• The programme is regional or cross-national in scope; or
• The programme or initiative should be a trailblazer or involve a demonstration, survey, or research project.

Varma Committee Report:

The Varma Committee, established on the 51st NDC meeting’s proposal, delivered its findings in September 2006. The following points were suggested in the report:

Only with the consent of the Full Planning Commission and in cooperation with the states may a new CSS be implemented.

In conjunction with the States, the Planning Commission shall conduct a zero-based budgeting exercise at least once every five years.

Only if the yearly budget exceeds Rs.300 crore should a new CSS be allowed. Existing CSSs having yearly outlays of less than Rs. 300 crore to be shut up by 31 March 2007 and the funds transferred to the States under the Normal Central Assistance route.

All current CSS should be notified of their end dates, targeted outcomes, and result assessment technique by the Planning Commission. All new CSS should include start and end dates, and if no end date is supplied, the CSS will stop at the end of the Plan period. Around the time the CSS is terminated, the problem of terminal liabilities should be handled by the federal and state governments.

The State Budget should be the conduit for all CSS funding. States should make provisions in advance of the Central releases for the sake of practicality.

Any monies not transferred through the State budget, like all CSS for which funds are granted through the State budget, shall be subject to yearly spending verification by the Indian Audit and Accounts Department.

The Planning Commission reviewed the study while drafting the Eleventh Five-Year Plan.

Conclusion:

The core of core schemes and core schemes are the two categories of centrally supported programmes. Green Revolution, White Revolution, Blue Revolution, Pradhan Mantri Gram Sadak Yojana, Pradhan Mantri Krishi Sinchai Yojana, Pradhan Mantri Manti Awas Yojana, Swachh Bharat Mission, Mid-day meals in schools, and National Livelihood Mission are just a few of the major programmes. The umbrella programme for the development of scheduled castes, the umbrella scheme for the development of minorities, and the Mahatma Gandhi National Rural Employment Generation Scheme, on the other hand, are among the most important of the basic schemes. The central government completely funds the implementation of core of core initiatives for social inclusion and protection.